'and the debt is not one that is owed to, or to persons acting for, a limited partnership which is a collective investment scheme within the meaning of section 235 of the Financial Services and Markets Act 2000'.

"(5A) A loan relationship shall not be regarded as having an unallowable purpose in regard to a company where, on the application of that company, the Board have notified the company that the Board are satisfied that the loan relationship does not have an unallowable purpose.

(5B) Any application under subparagraph (5A) above shall be in writing and shall contain particulars of the loan relationship to be entered into by the applicant and the Board may, within 30 days of the receipt of the application or of any further particulars previously required under this subparagraph, by notice require the applicant to furnish further particulars for the purpose of enabling the Board to make their decision; and if any such notice is not complied with within 30 days or such longer period as the Board may allow, the Board need not proceed further on the application.

(5C) The Board shall notify their decision to the applicant within 30 days of receiving the application or, if they give a notice under subparagraph (5B) above, within 30 days of the notice being complied with.

(5D) If the Board notify the applicant that they are not satisfied as mentioned in subparagraph (5A) above or do not notify their decision to the applicant within the time required by subparagraph (5C) above, the applicant may within 30 days of the notification or of that time require the Board to transmit the application, together with any notice given and further particulars furnished under subparagraph (5B) above, to the Special Commissioners; and in that event any notification by the Special Commissioners shall have effect for the purposes of subparagraph (5A) above as if it were a notification by the Board.

(5E) If any particulars furnished under this paragraph do not fully and accurately disclose all facts and considerations material for the decision of the Board or the Special Commissioners, any resulting notification that the Board or Commissioners are satisfied as mentioned in subparagraph (5A) above shall be void.".'.

Mr Andrew Smith

144

Schedule 25, page 304, line 2, at end insert

'but nothing in sub-paragraph (1) or paragraph (b) above shall prevent any credit in respect of interest from being brought into account for the purposes of this Chapter by the person described in that paragraph.'.

Mr Andrew Smith

145

Schedule 25, page 304, line 9, at end insert

'(1A)

In sub-paragraph (1) (accounting periods to which the paragraph applies) for paragraph (b) substitute

"(b)

at any time in that period another company stands in the position of a creditor as respects that security;".'.

Mr Andrew Smith

146

Schedule 25, page 304, line 18, at end insert

'(3A)

For sub-paragraph (8) (which defines what it is for the benefit of a security to be available to a company) substitute

"(8)

Any reference in this paragraph to a person who stands in the position of a creditor as respects a relevant discounted security includes a reference to a person who indirectly stands in that position by reference to a series of relevant discounted securities.

(8A)

Where this paragraph applies by virtue of sub-paragraph (8) above, the reference to the corresponding creditor relationship in sub-paragraph (1)(d) above is a reference to the creditor relationship of the company which indirectly stands in the position of a creditor as respects the relevant discounted security.".'.

Mr Andrew Smith

147

Schedule 25, page 304, line 28, leave out 'and'.

Mr Andrew Smith

148

Schedule 25, page 304, line 30, at end insert '; and

(c) omit the word "and" immediately preceding paragraph (b)'.

Mr Andrew Smith

149

Schedule 25, page 304, line 36, at end insert

'(3A)

At the end of paragraph (b) of that sub-paragraph add "; and

(c) the debt is not one that is owed to, or to persons acting for, a limited partnership which is a collective investment scheme within the meaning of section 235 of the Financial Services and Markets Act 2000.".'.

Mr Andrew Smith

150

Schedule 25, page 304, line 43, leave out from beginning to second 'and' in line 44.

Mr Andrew Smith

151

Schedule 25, page 309, line 12, after 'if' insert '(a)'.

Mr Andrew Smith

152

Schedule 25, page 309, line 14, at end insert '; and

(b) the shares are not, within the meaning of Chapter1 of Part12 of the Taxes Act 1988, assets of an insurance company's long-term insurance fund (see section 431(2) of that Act)".'.

Mr Andrew Smith

153

Schedule 25, page 313, line 46, at end insert

'Life assurance business

39A

(1)

In Schedule 11 (loan relationships: special provisions for insurers) Part 1 (insurance companies) is amended as follows.

(2)

In paragraph 1 (I minus E basis) after sub-paragraph (1) (which provides that nothing in the Chapter prevents profits and gains from loan relationships of insurance companies referable to life assurance business from being included in profits and gains chargeable in accordance with the I minus E basis) insert

"(1A)

Where

(a) the I minus E basis is applied for any accounting period in respect of any life assurance business carried on by an insurance company, and

(b) in that accounting period the insurance company is a party to a loan relationship which is to any extent referable to that business,

then, in applying the I minus E basis to that business, sections 92(1)(f), 93(1)(a) and (b) and 96(1)(b) of this Act shall be disregarded in relation to that loan relationship to that extent.".'.

'(3) Nothing in this Schedule shall cause or require the recognition of income chargeable to tax by reason of any transactions involving futures or options by the trustees of an authorised unit trust or by an open-ended investment company, and "company" and "derivative contract" shall be interpreted accordingly.'.

Mr Paul Boateng

174

*Schedule 26, page 332, line 27, leave out from 'which' to 'or' in line 28 and insert ', if the future were to run to delivery, would fall to be delivered at the date and price agreed when the contract is made,'.